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tv   Fareed Zakaria GPS  CNN  June 14, 2015 7:00am-8:01am PDT

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$100,000 from the controversy and so-called liberal media coverage. who says he is bad with money. before we go today an exciting announcement. i will be moderating the reason debate at the reagan library. our first "state of the union" together i want to thank the previous hosts for guiding the ship so ably for so many years. i want to hear from you. send ideas, constructive criticism and suggestions. you are who we're doing this for. i'll see you on "the lead" tomorrow. "fareed zakaria gps" starts right now. this is gps. welcome to all of you in the united states and around the world. i am fareed zakaria. today we'll start with the two biggest foreign policy challenges facing the president and the world.
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first off, the cold war between russia and the west over ukraine is getting worse. ukraine's leader says his military must be ready for a full-scale invasion from russia. i'll talk about putin's plans for the summer with the american ambassador to the united nations, samantha power from kiev. then this week the white house announced plans to beef up operations in iraq. more troops more training more weapons, maybe more bases. will it work? is it the right way to take on isis? also how to get people to have more unprotected sex. really. well actually how to get them to have more babies. that's what many countries from denmark and singapore are trying
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to figure out. a report on the declining demo demographics of rich countries. finally, would you pay $10 for a can of coke? how about a ben franklin for a fresh melon? these sky high prices are found in a place where the u.n. says almost 70% of the population live below the poverty line. we'll take you there. but first here is my take. of the many unnerving aspects of the future of the middle east a nuclear arms race would top the list. it is to feed that unease that saudi aarabia has been periodically dropping hints, that if iran's nuclear ambitions go unchecked it might have to get nuclear weapons itself. last week the saudi ambassador to the united kingdom made an explicit threat warning that all options will be on the table. oh, please!
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saudi arabia isn't going to build a nuclear weapon. saudi aarabia hasn't even built a car. by 2017, after much effort the country is expected to manufacture its first automobile. saudi aarabia can dig holes in the ground and pump out oil but little else. oil comprises 44% of its gdp, a staggeringly high figure. oil makes up almost 90% of its revenues despite decades of massive government investment lavish subsidies and cheap energy manufacturing is less than 10% of saudi gdp. where would they train the scientists to work on its secret nuclear program? the country's education situation is backward and dysfunctional having been largely handed over to the puritanical reactionary religious establishment. the country ranks 73rd in the quality of its math and science
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education according to the world economic forum, abysmally low for a rich country. iran despite 36 years of sanctions and a much lower per capita gdp ranks far higher at 44. who would work in saudi new century. karen elliott house formerly of the "wall street journal" describes the saudi labor market. one of every three people in saudi arabia is a foreigner. two out of three people with a job of any sort are foreign. in the animmic private sector nine out of ten people holding jobs are saudi. all too many men do not want to work at jobs for which they're qualified, in which women by and large are not allowed to work and in which, as a result most of the work is done by foreigners. none of this is to suggest that
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the kingdom is in danger of collapse. far from it. the regime's finances are strong and the public spending is rising and royal revenue declining. they've used patronage, politics religion and repression to keep the country stable. that's produced a system of stagnation for most with a gilded elite surfing on top with almost uninimaginable sums of money. why couldn't they just buy a bomb? highly unlikely. that would have to take place secretly under the threat of sanctions, western retaliation and interception. they need foreigners and their firms to help with the energy industry. build the infrastructure buy its oil and sell its goods and services. would isolated like iran or north korea its entire economic system would collapse. it's often claimed pakistan would sell nukes to the saudis. it's true the saudis bailed out
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pakistan many times but the government in islamabad is well aware such a deal would jeopardize its own future and its unlikely to do that. in april pakistan refused repeated saudi pleas to join its air campaign in yemen. so let me make a prediction. whatever happens with iran's nuclear program, ten years from now, saudi arabia won't have nuclear weapons because it can't. for more go to cnn.com/fareed and read my "washington post" column this week. let's get started. the united states mercedes to the united nations, samantha power, spent the better part of the week in ukraine where tensions with rugsa are once again spiking to dangerous levels. ukraine's president told his
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military it must be prepared for full-scale invasion along the border with russia. he said summer was the most likely time for the event. as for power, she has long been a critic of russia's actions against its neighbor is tweeted this week the u.s. stands with ukraine on countering russian's aggression. she joins me exclusively now from kiev. ambassador give us a sense of how dangerous it is that this cold war could actually get quite hot. are there actual signs that russia is planning an invasion? >> well let's be clear that over the course of the last year and a half russia has already lopped off part of ukraine or attempted to in its annexation of crimea justified by a phony referendum that gave voters two choices. join russia or be fully
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independent. that's where this all started. in eastern ukraine you've already seen the flow of thousands and thousands of tons of weapons, rocket launchers, artillery, surface to air missile sites. recently a russian uav was downed and, of course uavs don't fall from the sky in donetsk or donetsk. those require sophistication in terms of operation and bringing them to bear in a conflict. a lot of the facts on the ground have been created by russia. in the period since the minsk agreements in february it's clear russia has made an effort to wage a train and equip program to leave the separatists also with much more sophisticated command and control. >> if there were a russian escalation, whether irregulars or actual russian forces would the united states militarily provide assistance to the ukrainian government. >> we're not focussed on
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hypotheticals. we're focused on the minsk agreements which were signed by the relevant parties including the russian federation and president putin at the helm and implementation is the key. that's why we are hopeful and have reason to believe that europe will reup the sanctions isolating president putin, inflicting costs for the aggression that's been carried out first against crimea and of course against eastern ukraine. what i want to stress that the ukrainian people here are also getting on with it. they are embarking upon a major reform effort to try to get the economy in shape, to try to fight corruption break up the monopolies take on the oligarchs. it's great extraordinary the extent to which they're compartmentalizing. they need to defend against a potential rampup in russian aggression but recognizing their best defense over time is to get
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their democracy in order. >> you say in your speech this week that the kremlin made serious miscalculations, miscalculated that ukrainians would have resolve and resilience. isn't it fair to say that washington -- that you also miscalculated? the economic sanctions have not altered putin's strategic calculus. his popularity ratings have hit new highs and he does not seem in any way to be backing down. isn't that a miscalculation? >> i think it's fair to say that sanctions as a general proposition take time to bite and to change calculuses. so it's true that president putin has his own way of doing business but it's also true that if you look at where sanctions have worked elsewhere in the world. serbia the iran regime. apartheid. it takes time for sanctions to affect the calculus. what's true up to this point is that they have to a very significant effect on the russian economy.
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it's very important to note we don't want sanctions. our end state is to see minsk implementation. we would like nothing more than for everybody to take an off-ramp and begin to restore diplomatic relations, but that's going to require ukraine regaining sovereignty over its international border. >> the end game the solution is russia gets to keep crimea but it has to get out of eastern ukraine in substantial part. >> no. the end game in terms of eastern ukraine is the minsk agreements. crimea we've been very clear. the u.n. maps will never change. crimea is part of ukraine. it has been part of ukraine and will remain part of ukraine. >> ambassador while i have you. very tough article in the "wall street journal" about your tenure last week. the obama doctrines u.n. failure it was called.
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human rights interventions. your own tenure has been marked by failure in all the areas mentioned particularly the responsibility to protect civilians in places like syria and ukraine, that ultimately you haven't delivered for them. what would you say to that? >> i'm focused on the job that i have to do every day. i think if you talk to the people of south sudan or the central african republic or certainly if you come to ukraine, you would hear a very different message about the obama administration and what we've done on behalf of their rights in order to prevent atrocities. so my focus is on the next year and a half and making sure we get as much done as we can in the time we have available to us. the fact that there has been an awful lot of aggression carried out by regimes that have committed unspeakable atrocities is not something that i think can accrue to any one individual but it is incumbent
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on us to call out those regimes and look at the tools in the tool box and try to get as many deployed as we can to protect people in the time that we have. >> ambassador samantha power pleasure to have you on. next the obama administration's other big headache isis. this week it announced some extra resources thrown into the fight. but are 450 more u.s. troops really going to make a difference? we'll ask. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.
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one-year anniversary of mouse mosul falling to isis. the second largest city in iraq still remains under isis control today. earlier this week the white house announced plans to
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reinforce the current strategy to defeat isis. the plan consists of sending up to 450 additional u.s. military personnel to a base in anbar province bringing the total number of u.s. military advisers in country. they'll reinforce iraqi fighting groups. general martin dempsey, the chairman of the joint chiefs said thursday the united states might establish more training bases like the one in anbar. will these seemingly small adjustments to u.s. policy really tip the scales against isis? are they a good idea? joining me to discuss are richard haas, the president of the council on foreign relations and david rothkoff editor of foreign policy magazine. >> is this a step in the right direction? >> it is. there are a lot of other steps that are required but one thing
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that's important about it is that it shows the white house recognizes things are not working, that they're adapting and recognizing that changes need to be made. whether this addition of troops and the possible setting up of other bases and other troops is enough is unlikely however, because, of course we know from past experience that trainers work best when they're able to go out into the field with troops and that's not part of this plan. we don't know how well the iraqi will do recruiting sunnis. that's not part of this plan. we have a bunch of big blank spaces. and so while it's encouraging, big question marks remain. >> richard, isn't -- to me the central lesson of the last ten years in iraq and afghanistan is you can do all this military stuff. more trainers more equipment. better bases. if you fix the military stuff but don't fix the politics behind it that is create an iraqi government that people
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want to fight for that the sunnis in particular want to fight for, it doesn't matter because the minute united states leaves or takes their foot off the accelerator the whole thing crumbles. >> that's absolutely right. there is nothing here that changes any of the basics of what's essentially a sectarian iraqi government. it doesn't change the political basics of iraq or syria. even militarily to say this is a step in the right direction. maybe, but we're talking about a baby step. let's not kid ourselves. this is kind of decision you get by consensus when people know the policy is not working but they reject anything dramatic or decisive. this is the first of what's going to be decision after decision. this is incrementalism. that's something we've also learned over the years. these types of adjustments don't work. them' be overwhelmed by the pace and dynamic of events beyond our control. >> you say it's a baby step. i'm asking is it even the right
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direction. you know how this is. you've been in that hot seat in the white house. you commit the united states with more troops. you give these briefings. and if it's not going to work and i don't think this is going to work you then face the problem, which is you've now committed your prestige are you going to escalate. >> we know this isn't going to work. it's too small to make an appreciable or measurable differential. the question is either you do more on behalf of the iraqi government -- and i don't see a basis to do that. the alternative is switch strategies and instead of doing things through bagdad you would essentially say that iraq is essentially behind us. it did not work. woo now we have to work larger and more directly with the kurds and sunnis of western iraq and syria. either you do different things with your existing strategy or
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choose a different strategy. i think the time has come for the latter. >> what about that. richard's predecessor wrote a piece in 2004 saying iraq is not a country we should be treating these three communities as three separate groups and be dealing with them independently. >> i think that's what's happening right now. i think the kurds have proven to be dependable allies for us and proven to be effective fighters against isis. they've scored some gains recently in turkey. and i think the emergence of kurdistan as an entity is likely to continue. i think that would ultimately be a good thing. i hope we'd support it. we've been too much on the fence on it. the iranians have seized a big chunk of iraq. i don't think we'll get it back from them. the question is what happens to the sunni part of iraq. is it a state controlled by isis
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or by somebody else? >> fareed i think one day on the show we'll talk about saudi arabia. the group that calls itself the islamic state is never going to be content until it has sway against the city that has the upper hand. i think it will get worse before that it gets even worse. >> worse before it gets even worse. you want to disagree with that? >> i don't want to disagree with that. >> please do. >> i understand you might think that validates your position but i think that the reality is if we don't make gains in the context of the sunni region if we don't solve this problem now and isis establishes this as a base then almost inevitably you end up with what richard is talking about. they'll say, we have a base. we can solidify. where do we go from here. >> we're seeing an administration whose trajectory was to get out of the middle east.
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now the middle east won't let it. they keep bringing us back. the united states is going back in small, reluctant ways. it's not going to work. we need to make bigger decisions. do less and leave it to its own devices, that's problematic. do bigger and different things. this kind of incrementalism along the lines of existing policy is the one thing we know will not succeed. >> it's the illusion of action. that's a mistake. >> fascinating conversation. on that the two of you agree. next on "gps," how in the world do you get people to have more babies? believe it or not, this is a burning question or governments around the world. we will bring you some of their best ideas. you'll probably try them at home. or a mouth breather. well, put on a breathe right strip and instantly open your nose up to 38% more than allergy medicines alone. so you can breathe and sleep. shut your mouth and sleep right. breathe right. start living and driving like a winner. enter the quicken loans drive home a winner sweepstakes for your chance to win
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world segment. something is odd in the state of denmark. a danish travel company has been wooing daenns to take a romantic trip aboard pointing out that they have 46% more sex on holidays and 10% of daneish
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children are conceived during vacations. they add baby goods if the couple conceives on the trip before delivering the memorable catch phrase. >> do it for denmark. >> denmark and other countries are worried about their stagnant aging populations. according to the u.n. the average woman needs to have 2 had the 1.2 children to maintain the population of the country. every country including denmark is below that level. by 2050 some countries like greece portugal and germany will see their populations drop by double-digit percentages according to pugh. japan is the poster child for this population crisis. its government projects that it will lose over 2 million people in just the next five years. by 2050 it will have lost 1/5 of its total population and there
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may be only 43 million people in japan by 2110. not only will some country's populations shrink they'll also get older. europe's over 65 crowd will increase to over a quarter of the population there by 2050 according to the u.n. japan's will be over one third. that means already cash-strapped countries will have higher bills to pay to provide retirees with pension and health benefits. it's no wonder denmark and other countries are gatinge getting creative. south korea's government is trying to reduce the price of weddings to encourage more marriage working with religious organizations to cut costs. a region in russia encouraged citizens to bare a patriot. in 2012 singapore was treated to
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national night. a campaign to encourage baby making on singapore's national holiday. so are these kinds of measures actually working? demographers told us that in general it's difficult to get people to have children purely using financial incentives. that said france has championed child-friendly policies like paid family leave for parents of newborns and preschool for 3-year-olds and its fertility rate is one of the best in europe. in the united states the fertility rate hit a record low in 2013 according to the cdc, but pugh still predicts that america's population are actually grow by 27% from 2010 to 2050. why? one big reason is immigration. the u.s. has a younger population than europe to begin with and it takes in lots of immigrants. immigrants tend to have more children than native-born americans. so the united states compared
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to many other large, rich countries in the world. will be demographically vibrant and growing for decades, and immigrants will help drive that growth. i am guessing that is an ad that no one is going to make anytime soon in america. next on gps, the u.s. has a new crown to wear this week. it's been named the world's biggest oil and natural gas producer knocking russia off the top spot. many argue that's good for the economy but bad for the environment. michael porter says it's good almost all around. when we come back.
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spot. much to the chagrin of environmentalists it's an extraordinary time for carbon based energy production in the united states. my next guest will make the case that it's not bad. in fact he says it's almost all positive. how so in mike the porter a professor at the harvard business school is said to be the world's most cited scholar on business and economics. he and the boston consulting group published a study called "america's unconventional energy opportunity, a win-win plan for the economy, the environment and a lower carbon cleaner envelope future." the long title, it says a lot. let's start by understanding how surprising this has been. in 2005 what did america look like on energy? >> america was nowhere in terms of this new resource. we just had the conventional depleting supplies of oil and goes. we were approaching in the conventional ways. then this technological revolution had been supported by
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public policy took off. and we ended up with being the leading energy producer in the world. >> let's look at the natural gas production. looking at this chart, as you say, it spikes up ex tra ordnarily. this is also true of oil. looking at what oil production looks like in the united states it's declining and declining. then you see a spike. what's that about? >> that's about the technology allowing you to actually develop a resource that we didn't think was that valuable which is this oil or gas locked into shale. and this took a -- the hydraulic frac fractureing fracturing which people call fracking. which we should talk about. the word fracking is getting in the way. >> what do you say that the word fracking is getting in the way? >> if you're at a party and you
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say, what do you think of fracking? the typical person will recoil because they've heard stories about earthquakes and read about water and contamination and all kinds of environmental issues. by the way, they're real. there are those issues. but what i don't think people understand is that those environmental issues are -- we're making huge progress in kind of beating those down and doing it better and what people don't associate with fracking is this enormous economic transformation that's going on. we now are, by far, the lowest energy cost nation in the world. every household has gotten $800 bonus every year in terms of lower energy prices. we have had 2.7 million jobs, we estimate created since 2005. that's about half of all the jobs created since 2005. and we have an opportunity to continue this growth process and spread it throughout our entire
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economy. so at a time when our economy is not performing well where we are facing real challenges where the middle class are not moving ahead and growth is slow this is by far the single biggest opportunity we have. >> your calculation, in this report is that oil and natural gas are -- fracking essentially, are adding $430 billion to the economy every year. >> at least. yeah. that's our best estimate. and that's -- that's as big as a large state. this field is much bigger than the auto industry. this is a huge field. and it's just starting because it really starts with the production of gas and oil. but then that -- then it gets used to generate power. that's growing. it will continue to grow. it starts getting used as a feed stock. our petrochemical industry is revitalizing in america. our plastics industry is revitalizing. >> because energy costs are so low. and in advanced industrial
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countries, labor is not such a large part of it. >> for example, our industrial electricity prices are about one half of our other major trading partners. and our gas prices are about a third of our major trading partners'. all of a sudden, out of nowhere, a bunch of crazy guys in texas mostly have created this enormous competitive advantage for the united states. but it's come with some environmental concerns. >> let's talk about the environmental issues. there are earthquakes that people talk about. let's talk about what happens to water. and let's talk about methane that gets released. >> yes. >> which of these should we worry about and can good regulation deal with them? >> i think we should worry about them all. one of my big concerns here is how the u.s. industry has really been working kind of productively to its own long-term interests. there has been too much denial in the industry. oh no we're not causing those
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earthquakes. oh no the water is not a problem. and it is. remember real documented problems that are significant. the good news is that -- we've done a deep-dive on this. in all of these areas, and there are i agreesareas of congestion and more than you mentioned. in all areas, practice is improving. we're getting better. we're able to control most of these problems. and what we did also was to actually do a study, and it doesn't cost much to reduce these problems. you just have to do things right. we can control these problems including earthquakes. but we're not telling that story. the general public hasn't heard that story. they think that these problems are endemic and unfixable but they're really not. >> pleasure to have you on. terrific report. up next we bring you the odd tail of the most expensive city in the world for expats where poverty levels run wild among the nation's citizens who
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can barely afford to feed themselves let alone pay $10 for a can of coke. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac.
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release its annual cost of living survey that shows where it is most expensive for an expat to live. a betting man might put his money on london or moscow or tokyo. more likely to be loango angola. it's been the world's most expensive city for four of the last five years. the fifth year it was in second place. it's a place where my next guest tells of $10 cans of coke $110 melons. fancy cars ex ororbitant rent. how does it happen? michael specter, staff writer at the now yorker and aweuthor of the piece "extreme city." how does this happen? how can loango angola be the
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world's most expensive city? >> oil. it's the second biggest exporter of oil in africa after nieshggeria. america and european companies are there. the people who work for them want to live like they live in south houston. that costs a lot of money. they don't make much in angola. you have to ship it all in. it costs a for tune. it's $105 for a melon. those things are flown in. people insist on having that kind of stuff, and the oil companies need they are expertise. every major city in the developing world and even in our part of the world has a huge discrepancy between rich and poor people. >> this is outrageous. >> this is like nothing i've ever seen. it has most often, this year maybe not, the highest infant mortality rate in the world. most people there earn less than $2 a day. yet, if you want to buy a range
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rover, which are readily available, you'll pay twice what you pay in london or new york. because people will do that. >> when you take a taxi the price escalates. explain that story. >> first of all, there aren't really taxis but there are car service type things. i was going out to one of these private oases for a barbecue and asked is the hotel for a driverment it takes two hours because it's one road and there is traffic. they said we can provide one but it will be $150. i didn't have a choice so i said fine. an hour i came back and he was frantically waving at me. he said i was wrong about the cost. i said oh really? he said yeah. it's $450 each way. $900 round trip, 20 miles. i actually got a ride from
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another kind journalist. >> what's odd about this place is that this has happened so fast. before, was it 2010, uganda isn't doing any of this. explain why. >> there has been a civil war going on there since 1975 when the portuguese gave up their colony and left. and it's been very vicious. the general estimate is that 10 million land mines have been planted around the country. and many of them have been dug up but it's really hard to get them all. almost no one was unscarred. so that stopped in 2002. you're looking at kind of 12 years out of the last 400 years in which this country is a, quote, democracy. >> that's when the oil companies came. >> the oil companies came a little earlier, but they dominate because they create a lot of revenue. and angola went from having $300
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in the bank to $500,000. nobody sees it except friends of the president. i am familiar with oleigarchsoligarchs. they make them look like pipers. it's crazy what they do. >> you see no general economy beyond oil. >> there could be a general economy. it's a beautiful country with rich agricultural possibilities, an incredible coastline. it could be a great place for tourism and agriculture. the roads are very bad. the infrastructure is terriblementterrible: it's getting better because the chinese are building everything. it will be a long time until people go to angola for a vacation. the land mine thing is a legitimate issue. >> i would imagine you would be a little worried. >> there are a lot of beautiful places you don't want to go hiking. it's a beautiful country. in theory they could get beyond
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their dependence on oil. in reality they're not trying very hard. >> fascinating piece. >> thank you. next popes, princes and politicians. some politicians are coming together on one issue. we'll tell you why next week promises to be a historic one, when we come back. this allergy season, will you be a sound sleeper, or a mouth breather. well, put on a breathe right strip and instantly open your nose up to 38% more than allergy medicines alone. so you can breathe and sleep. shut your mouth and sleep right. breathe right.
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tomorrow is the 800th birthday of magna carta. it was agreed upon by king john and the country's rebellious barons on june 15th 1215. in less than three months it was nullified. which brings me to my question.
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who declared it to be quote, null and void of all validity forever in 2015? richard the lion heart, henry iii. louie viii. you know how people are always saying that kids today are career obsessed and shallow? well this is my defense of the millennials titled "the try-harder generation" it's adapted from my new book. you can find a link to the essay on our website and you can always buy my book. for the last look. next week pope francis will do something historic. he will issue an incyclical his second one so far. a powerful letter to all the people of the world on climate change. it's expected to be a great call to action from a pope named for the patron saint of ecology.
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the news prompted rick santorum to say last week that the pope should quote, leave signens to the scientist. he was soon informed pope francis worked as a chemist before deciding to enter the seminary. in the past century eight popes have issued a grand total of 120 incyclicals on topics ranging from child poverty to contraception to disarmament an the cuban missile crisis. this comes at a key moment for climate policies. the state of the planet is not just on the papal radar. prince charles addressed the subject last week calling for a magna carta for the earth, what he called a, quote, long-standing contract for the earth and humanity's relationship to it. his prime minister joined in
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when the g-7 leader set a new goal this week to end fossil fuel usage by the end of the century. whether or not mr. santorum agrees with his holiness or his royal highness climate change is on the agenda of popes, princes and politicians this year not to many many many scientists. the correct answer to the "gps" challenge question was d. at the time the religious overlord of england magnified the magna carta at the thrust of king john thrusting england into civil war. when both king john and the pope died in 1216, the regent looking after john's 9-year-old son, henry iii, issued a new version of the great charter. it was revised several times, until it became a part of england's statute law in 1297. today the document is often considered the foundation of the rule of law, a symbol of modern
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dom ok racy and inspiration for authors of many constitutions including that of the united states. it's a good thing it was not null and void of all validity forever. thanks to all of you for being part of my program this week. i will see you next week. seismic shift in the media world. rupert murdoch sets steps to hand over the reins of his empire to his sons. what does it mean for fox news? continuing to reveal the duggars' secrets. has it gone too far at this point? good morning. i'm brian stelter. it's time for "reliable sources" we'll have more on those stories later. first, what a weekend for presidential politics. yesterday hillary clinton's sweeping campaign speech billed as a launch speech here in new york. tomorrow jeb bush's term. new